Paul Tassin  |  February 3, 2017

Category: Consumer News

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proactiv-3-step-systemParties have reached a $15.2 million Proactiv auto-renewal class action settlement that will provide affected consumers with an option of cash or products.

The Proactiv auto-renewal settlement wraps up a consumer class action lawsuit that accused direct marketing company Guthy-Renker of roping consumers into a subscription service that repeatedly and automatically sold them Proactiv skin care products.

Plaintiffs alleged that Guthy-Renker failed to adequately disclose the true nature of the Proactiv auto-renewal arrangement, in violation of applicable consumer protection laws.

Under terms of the Proactiv auto-renewal settlement, Guthy-Renker will make available more than $15 million to be distributed among qualifying Class Members. Claimants have the option of accepting a cash payment, estimated to range between $20 and $75, or free skin care products worth at least $75.

The size of each cash payment depends on how many Class Members choose to accept the cash option. Should all Class Members choose to receive the products instead, the value of the settlement could reach over $57 million.

Guthy-Renker’s minimum payment under the settlement is $2.5 million. Should Class Members opt for cash payments totaling less than that amount, the defendant will pay the balance to a charitable organization to be agreed upon by both parties.

In addition to the offer of cash and products, Guthy-Renker agrees to improve the disclosure of its Proactiv auto-renewal terms.

The company promises to present its continuous service terms “in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled.” The company will initiate recurring automatic charges only where the consumer has affirmatively consented to such charges.

This Proactiv auto-renewal class action lawsuit began in 2013 after plaintiff Jennifer Habelito purchased Proactiv skin care products online. Habelito claimed she had intended that order to be just a one-time transaction.

But just a few weeks after she received her order, Habelito said she received an additional delivery of Proactiv products. She realized only then that she had signed up for recurring purchases of Proactiv products under automatic renewal terms, terms that allowed her to be charged for automatic payments for each shipment.

According to Habelito, Guthy-Renker failed to adequately disclose the terms of this Proactiv auto-renewal subscription. She says that when she ordered her first purchase, she was not informed about the recurring automatic charges, nor did she explicitly approve them.

Though Guthy-Renker agreed to the Proactiv auto-renewal settlement, the company continues to deny the allegations against it.

The settlement Class includes California citizens who between Jan. 22, 2009 and July 8, 2014 were sent and auto-billed for additional Proactiv products beyond their initial purchase. Parties estimate there are 761,005 Class Members who may be eligible for a settlement payment.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Habelito and the settlement Class are represented by attorneys Dimitrios V. Korovilas and Jason M. Wucetich of Wucetich & Korovilas LLP.

The Proactiv Auto-Renewal Class Action Lawsuit is Jennifer Habelito v. Guthy-Renker LLC, Case No. BC499558, in the Superior Court of the State of California for the County of Los Angeles.

UPDATE: A federal judge preliminarily approved the Proactiv class action settlement on February 1, 2017. File a claim before April 17, 2017 to receive between $20 and $75!

UPDATE 2: On July 12, 2017, Top Class Actions viewers started receiving checks in the mail from the California Proactiv settlement worth as much as $68.51! 

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82 thoughts onProactiv Auto-Renewal Class Action Lawsuit Settles for $15M

  1. Lisa says:

    I received a $75 Merchandise Certificate but forgot about it and it got lost for a while. Is it still valid? The website listed for redemption, http://www.proactivclassaction.com, is no longer valid. Please advise, thanks!

  2. Lisa says:

    I received a $75 Merchandise Certificate but forgot about it and it got lost for a while. Is it still valid? The website listed for redemption is no longer valid. Please advise, thanks!

  3. Seth says:

    They stopped sending product. But kept charging my account. After canceling. Made me short for my rent isn’t that stealing???

    1. Stephen Bibb says:

      Yea cancelled subscription in July 2021 and they are still charging my account, sometimes every 2 weeks. Yes I am planning to sue them. Yes I am going to sue them separately. Yes I am going after them.

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